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FTC’s ‘Click-to-Cancel’ Rule Blocked But Experts Say to Comply Anyway
Subscription businesses may have breathed a sigh of relief when a federal appeals court blocked the Federal Trade Commission’s “click-to-cancel” rule in July, but legal experts say they should scale back their compliance efforts only modestly, or perhaps not at all.
The rule would have applied to companies selling subscriptions that renew automatically if the subscriber does nothing, or free trials that automatically turn into paid subscriptions. It would have required them to let customers cancel their subscriptions as easily as they signed up for them, using the same method — meaning that if a subscription was purchased online, it must be possible to cancel it online.
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